Bitcoin Gifts the Market a $2,000 Pump Just Before the New Year
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- reason behind the pump
- bitcoin new years eve show
Bitcoin Decided to Make a Great Gift to Most of the Cryptocurrency Market with a 3% Flash Pump poked out In the market a few hours before press time.
reason behind the pump
Some traders have theorized that the market showed sudden buying power due to a technical correction that was long awaited by the highly oversold market.
But the real reason is the December options expiry, with the maximum pain price below $47,000. Upon expiration, the next options contracts become the market’s main tool for hedging positions, or “betting” on the next bitcoin price over a specified period of time.
Since bitcoin follows derivatives rather than trends in the spot market, options and futures contracts are the two main determinants in the value creation process. The expiration of the options, however, does not directly affect the price; Instead, the options’ maximum pain price can serve as a guideline for spot traders.
bitcoin new years eve show
At press time, Bitcoin is entering the year 2022 with a “Green Day” and a nearly 3% price increase. But unfortunately for crypto investors, the largest cryptocurrency in the market has lost 30% of its value since its all-time high.
During the year, Bitcoin had several bear and bull cycles, which led to both a strong recovery and a correction. For now, bitcoin is trading at September, April and February levels.